LVMH - The Paris Court of Appeal
Confirms eBay’s Liability

September 03, 2010 11:19 AM Eastern Daylight Time

PARIS--(BUSINESS WIRE)--The Paris Court of Appeal has today found eBay liable for selling on its
websites, between 2001 and 2006, counterfeit Louis Vuitton and Christian
Dior products as well as Dior, Guerlain, Givenchy and Kenzo perfumes in
violation of the selective distribution networks put in place by these
brands.

The ruling confirms the decision by the Paris Commercial Court on June
30, 2008, which established the principle of eBay’s liability for
engaging in the sale of counterfeit products as well as products
reserved for selective distribution. This decision also dismissed eBay’s
claim for exemption on the ground that it was acting as a mere provider
of hosting services.

In addition, the Court prohibits eBay from direct or indirect violation
of selective distribution networks in the future.

Today’s ruling further orders eBay Inc. and eBay AG to pay penalties
amounting to 5.7 million Euros. It also gives the possibility for the
claimants to seek redress before foreign courts for damages suffered in
their jurisdictions.

LVMH welcomes the establishment of this case-law, which constitutes a
major step in the further protection of consumers.

The Court’s ruling helps to clarify the rules applicable to e-commerce
in order to prevent illicit online practices and to ensure greater legal
certainty to the benefit of consumers operating online.

The ruling confirms the importance of selective distribution, which
ensures the authenticity and quality of products for consumers.
Selective distribution also generates numerous jobs and contributes to
the ongoing worldwide success of European luxury goods brands.